Boise Cascade (NYSE: BCC) reported Q2 EPS of $0.57, $0.03 worse than the analyst estimate of $0.60. Revenue for the quarter came in at $1.14 billion versus the consensus estimate of $1.14 billion.

Outlook

As in recent years, we expect to continue to experience modest demand growth for the products we manufacture and distribute in 2017. As of July 2017, the Blue Chip consensus forecast for 2017 reflects 1.23 million total U.S. housing starts, a 5% expected increase from 2016 levels. We expect to manage our production levels to our sales demand, which will likely result in operating some of our facilities below their capacity as we did in 2016. We also expect plywood sales volumes to be below prior year levels as we shift more veneer away from plywood in support of our EWP growth. Future commodity product pricing could be volatile in response to industry operating rates, net import and export activity, the North American softwood lumber trade dispute, inventory levels in our distribution channels, and seasonal demand patterns. We expect sequential improvement in EWP net price realizations in the second half of 2017.

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